If, when recovering from an inflationary period, the inflation rate declines and the unemployment rate also declines, this could be the result of
A. aggregate supply decreasing at a faster rate than aggregate demand is increasing.
B. aggregate supply decreasing at a faster rate than aggregate demand is decreasing.
C. aggregate supply increasing at a slower rate than aggregate demand is decreasing.
D. aggregate supply increasing at a faster rate than aggregate demand is decreasing.
Answer: D
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A) pursues his or her own selfish interests. B) generates negative externalities for everyone else. C) accepts benefits without paying his or her share for receiving the benefits. D) actually improves the efficiency of market processes by buying low and selling high.
The fact that using money avoids the double coincidence of wants necessary in a barter economy illustrates which function of money?
A) medium of exchange B) unit of account C) store of value D) source of liquidity
How are corporate profits taxed in the United States?
A) Earnings are taxed first by state sales taxes and then as corporate profits at the Federal level. B) Corporate profits are not taxed at all. C) Earnings are taxed first as personal income then as corporate profits at the Federal level. D) Earnings are taxed first as corporate profits then as personal income after dividends are paid.
A ______ economy is an economy in which the government uses central planning to coordinate most economic activities
a. traditional b. command c. mixed d. market